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WEF: Greece’s Economy is not Competitive. Report Proves IMF/EU’s Wage Dumping Wrong!

What? You thought that dumping labor wages down to 500 euro per month would boost competitiveness? You thought that working 13 hours per day, 6 days per week will turn the debt-ridden country into growth paradise? The myth of “wages dumping as the fundament for competitiveness” is collapsing and thus by a report of the World Economic Forum (WEF).  Switzerland tops in global competitiveness index, India is 59th, Greece is 96th.

Furthermore the WEF report proves Greece’s leading lenders IMF and EU are wrong with their competitiveness policies. Then it takes much more for a country to be competitiveness than just have its labor forces sell their work for a bowl of rice.  Do not tell me, that Swiss, Finnish, Swedish, Dutch or German laborers wake up in the morning and go to a factory for less than 2 euro per hour. I won’t believe you!

WEF: Switzerland tops competitive rating, India 59th

Switzerland has the world’s most competitive and innovative economy, but some of its European neighbors are faltering and the US has slipped further down the ranking, the World Economic Forum (WEF) said Wednesday.Singapore maintained its second place, while Finland came in third, bumping Sweden to fourth place, followed by the Netherlands and Germany, according to the organization which hosts the annual Davos pow-wow of business and political leaders.“Switzerland earns the top spot in innovation, owing to the excellence of its education system, the high company spending on R&D (research and development), and the strong collaboration between the academic world and the business sector,” the WEF enthused in its Global Competitiveness Report 2012-2013.

Switzerland, which topped the ranking for the fourth year running, was also lauded in several other areas, including as the world-leader in labor market efficiency, and for having one of the most stable macroeconomic environments in the world.

But the picture was not quite so bright for a number of other European countries and the United States.

While European countries, especially in the north, continue to dominate the list of the world’s 10 most competitive nations, those in the southern part of the continent dipped further down the list.

Crisis-hit Greece, for instance, slipped to 96th place out of the 144 countries ranked, from 90th last year, while Portugal dropped to 49th from 45th place and Spain held its ground at 36th.

France also fell off the top 20 list, dropping to 21st place from 18th last year and 15th in 2010.

While WEF economist Thierry Geiger told AFP this small but negative trend was worrying because it reflected a significant drop in French government efficiency in the past couple of years, as well as in the macroeconomic environment and especially labor market efficiency.

The United States, which just five years ago topped the WEF ranking, also continued its decline, falling to seventh place from fifth last year.

WEF senior economist Margareta Drzeniek Hanouz stressed that the United States “still has one of the most sophisticated business environments in the world.”

However, she told AFP, the country is facing large “macroeconomic vulnerabilities”, including the rising deficit, and at the same time severe political deadlock and a dwindling trust in politicians.

“This results in an inability to address some of the major problems they’re facing,” she said, stressing that the politician fatigue was directed at both the country’s main political parties.

The WEF report was based on publicly available data and a survey of 15,000 business leaders in 144 countries.(sources)

I think, I ‘ll say “Shoo!”
 Juncker – Lagarde:
 When EuroZone Kissed Competitiveness

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  1. Is the world saying that the Swiss model, a non-EU nation is doing things right and running smooth.

    So why are we bothering listening to all the so called professionals from within the EU?.

    • because we are EU/EZ member and thus we receive money from them in order to re-finance their banks who lent money to Greece, for reasons only Greek governements know.

    • I agree that the quality of life in Switzerland means it’s worth a hard look at the way they organise themselves. A very local, bottom up system with strong democratic mechanisms.

      But the WEF ? Just another bunch of “tranzies”. Their rankings will show whatever they show on the basis of the choice of criteria used

  2. An Extract from “The Telegraph”

    The UK has risen to eighth, “settling firmly back in the top 10”. The WEF wrote:

    Quote The country improves its performance in several areas, benefitting from clear strengths such as the efficiency of its labor market (5th), in sharp contrast to the rigidity of those of many other European countries.

    The United Kingdom continues to have sophisticated (8th) and innovative (10th) businesses that are highly adept at harnessing the latest technologies for productivity improvements and operating in a very large market (it is ranked 6th for market size). The financial market also continues its recovery, ranked 13th, up from 20th last year. All these characteristics are important for spurring productivity enhancements.

    Research from Greece has claimed that the country faces a longer recession if it is forced by EU peers to apply cuts worth €1.6bn over two years instead of four,

    A state-sponsored study by the Center of Planning and Economic Research – known as KEPE – said:

    Quote In the case where the €11.6bn in agreed government spending cuts are implemented [over] a two-year period, we adopt the hypothesis that the 2012 recession will continue in 2013 and 2014.

    In an alternative set-up where fiscal consolidation expands over a four-year horizon…recession is estimated at 1.8 percent in 2013 and nil in 2014.

    Greece has been seeking additional time to make the cuts, agreed to in return for loans from the EU, the IMF and the ECB.

    Inspectors from those institutions are kicking off their next study of Greece’s progress on Friday. A positive report from the ‘troika’ is essential for Greece to get the next €31.5bn installment of funds to keep it afloat.

    But while there’s good news coming from the UK, the eurozone proves to be as unpredictable as ever. Spain has issued a veiled warning that it will not accept a full bail-out from Europe if the terms are too harsh – a move that would paralyse the ECB and call the euro’s survival into question.

    Business editor, Ambrose Evans-Pritchard, writes:
    In an escalating game of brinkmanship, Spanish finance minister Luis de Guindos said his country is not yet willing to sign a Memorandum giving up fiscal sovereignty to EU inspectors. “First of all, one must clarify the conditions,” he told German newspaper Handelsblatt.

    Mr de Guindos said the crisis engulfing the region is larger than any one country and warned north Europe not to scapegoat Spain.

    “My colleagues are aware that the battle for the euro will be fought in Spain. Spain is right now the breakwater for the eurozone,” he said, adding that “solidarity” would be well-advised.

  3. You are absolutely right. I think the best way forward if the Greek would increase their wages -let’s say 100 euro per hr? Maybe 200 is even better!- and reduce their workweek. 3 days per week, does that sound ok to you? Or just an afternoon per month? How about an additional month of holiday?

    We can all rest assured: The Greek crisis will soon be over!


    • as in the book: logicfree…

    • What are you whinging about? Who said anything about 100€ per hour and extra holidays?

    • A typical example of idiotic stereo-typing due to lack of something constructive, controversial or positive, leave alone intelligent, to contribute to a conversation/discussion.

      • If you really think the Swiss are rich because they have high wages you have seriously skipped a few econ classes.

        • Maybe get some basic reading classes first before you try econ?
          You can’t just go jumping to unfounded conclusions on what somebody doesn’t say (indeed, doesn’t say) and then start spouting nonsense based on your own wrong conclusions.